Central bank probes Goodbody as part of investigation into potential market abuse errors

‘Key personnel’ salaries at Goodbody Stockbrokers more than doubled last year to €8.1 million as the deal was prepared for sale to AIB, while the deal is now under central bank investigation as to how newly filed show accounts.

New accounts for Goodbody Stockbrokers UC show key executives at Goodbody shared €3.173 million in one-time “other payments” on top of their usual income.

Meanwhile, a note accompanying the just-filed 2021 financial statements said the company is under investigation by the central bank for alleged breaches of market abuse rules.

The notice said the central bank, led by Governor Gabriel Makhlouf, informed the company in January this year of its decision to open an investigation following a broader industry probe, including sending correspondence to the industry in January 2020 and July 2021 Reference to industry-wide deficiencies in the identification of market conduct risks, trade surveillance systems for market abuse and market abuse compliance frameworks – essentially the safeguards that must be in place to detect and deter potentially suspicious trading activity.

The purpose of the central bank’s investigation into the firm is to gather sufficient information to determine whether a violation has occurred, the note said.

“The steps taken so far do not indicate any infringement of the law by the company or its officers.”

“Given the early stage of this process, the outcome here is uncertain,” the statement concludes.

The accounts show that the stockbroking firm’s revenue rose 9 percent last year from €72.4 million to €79.2 million, made up of €75.93 million from contracts with clients and €3.26 million from .€ Compose trading earnings.

In September 2021, AIB completed the purchase of Goodbody for €138 million, including the stock brokerage and asset management group’s €56 million in excess cash, in a deal that would protect bonuses for the investment firm’s employees.

The group has offices in Dublin, Cork and Galway, as well as an office in the UK.

The total remuneration of €8.1 million for key management personnel last year consisted of salaries of €4.4 million, “other payments” of €3.17 million, pension costs of €3.17 million €201,000 and Management Board remuneration totaling €320,000.

Directors state that Goodbody Stockbrokers UC’s underlying pre-tax profit increased by 11% over the past year, excluding €3.6m of costs related to the sale to AIB.

The company’s fee income rose 34.5 percent from €32.2 million to €43.47 million last year, while commission income fell 8 percent from €25.89 million to €23.89 million. The company’s “Other Income” also fell by 7% from €9.2 million to €8.56 million.

The company employed 327.

https://www.independent.ie/business/irish/central-bank-investigating-goodbody-as-part-of-probe-into-potential-market-abuse-failings-42168284.html Central bank probes Goodbody as part of investigation into potential market abuse errors

Fry Electronics Team

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